Muhammed Farooq, 49, of Somerset, was charged with money laundering for allegedly allowing more than $5 million in fraudulent food stamp transactions to go on at businesses he owned in Essex and Union counties.Essex County Prosecutor's Office

NEWARK — The owner of four dollar stores in Essex and Union counties has been charged with money laundering and other crimes after investigators determined more than $5 million in fraudulent food stamp transactions took place at his stores, authorities said today.

Muhammed Farooq, 49, of Somerset, was charged with money laundering, theft by deception and food stamp fraud when he was arrested today, Acting Essex County Prosecutor Carolyn Murray said.

Farooq was arrested at around 9 a.m. as police executed search warrants at his four stores and his home, completing an eight-month investigation by the prosecutor's office, the federal Division of Homeland Security and U.S. Department of Agriculture's Inspector General, Murray said.

“The Food Stamp program is designed to help people in need," said Essex County Deputy Chief Assistant Prosecutor Walter Dirkin, director of the county's financial crimes unit. Any allegation of an abuse of the program will be investigated by this office."

According to Murray, Farooq was allowing patrons to buy non-food items, such as electronics, with food stamps. He owns two stores in Newark, and one each in East Orange and Elizabeth, Murray said.

The purchases totaled roughly $5.2 million and went on for nearly 2 1/2 years, Murray said.

A search of Farooq's Somerset home turned up $150,000 in cash, six computers, electronic food stamp machines and detailed business records, Dirkin said.

Farooq is being held at the Essex County Correctional Facility in lieu of $250,000, according to Murray, who said he will appear in court on May 22.